What Is Real-Time Bidding?

Posted by Aakash Yadav on August 30th, 2022

Real-time bidding is the process by which the app publisher and advertisers buy and sell the ad inventory. Like the stock markets, an advertiser evaluates a bid in real time. These processes take place on different servers, networks, and other platforms.

Still, want to know more about it? Let’s jump straight into the discussion.

What Is Real-Time Bidding (RTB)?

Real-time bidding is the process through which the advertising inventory is sold and bought within seconds on a supply-side platform (SSP). It is a type of programmatic advertising.

As the name suggests, the buying and selling of the ads happen in real-time. It means the ad inventory is traded based on every ad impression. With real-time bidding, all the processes take place within milliseconds. This process is also called Instant Bidding.

Supply-side platforms and demand-side platforms commonly use the method of RTB bidding. App publishers can control their inventories and manage them accordingly with the help of a unique dashboard or software.

How Does Real-Time Bidding Work?

Just like in a share market, the stocks of any public limited company are traded between the buyers and sellers within seconds. This concept is the same for the ad inventories. A publisher buys an inventory of ad space from anywhere in the world.

Let us understand the process in detail.

For example, imagine if you were watching a video on any app. The ad appears in front of you on that app during the ongoing video. At exactly that moment, your device's SSP generates an auction.

All the advertisers in this auction bid if they want to show their ad to you. The highest bid is selected and displayed on your device. This process happens in a split second, which is why it's called real-time bidding.

What Are the Advantages of Real-Time Bidding?

There are many advantages to the publishers of this technology. They are:

• The publishers get pricing precision for every ad inventory per impression.
• There is no unused ad inventory, which helps increase the overall revenue.
• The publishers get greater control over the pricing and ad quality.
• The premium inventory is sold with full control and transparency to the publisher.
• All these reasons accumulate and turn into high revenue generation for the publisher.
• It also generates a higher return on investment (ROI) for advertisers and publishers.

Conclusion

As we discussed above, RTB is one of the best technological advancements in digital advertising, that allows a publisher to generate higher revenues, have greater control over advertising inventory, have pricing precision, and is a time and money saver.

Understanding and using RTB and making it work for you can prove to be a great aspect in terms of the growth of your application. If you are an app publisher who wants to learn more about real-time bidding, AppBroda is here to resolve your queries!